Acquisition Pipeline
Q: What is your current acquisitions pipeline?
A: Management stated they have underwritten billions in assets and remain poised to proceed with strategic acquisitions when market conditions and refinancing opportunities are favorable. "

Capital Allocation
Q: How are you deploying capital?
A: They prioritize EBITDA growth by balancing acquisitions, share repurchases, and reinvestments to achieve the best return in current market conditions. "

Rate Normalization
Q: How do current rates compare to 2019?
A: Executives explained that while the midweek premium gap has shrunk relative to pre-pandemic levels, it still stays above pre-COVID levels, albeit not fully normalized to 2019 spreads. "

Margin Outlook
Q: Can margins stabilize to pre-COVID levels?
A: Management expects margin stabilization as expense growth moderates and the shift in business mix leads to lower costs, potentially approaching pre-COVID profiles. "

New Construction
Q: Are fixed-price new constructions attractive?
A: Leadership sees strong opportunities in fixed-price deals despite rising costs, highlighting acquisitions like the Madison Embassy as proof of attractive pricing. "

Acquisition Timing
Q: Will the share price impact acquisition timing?
A: They remain cautious—current share pullbacks signal potential but don’t prompt immediate deal acceleration, as acquisition timing is driven by overall market dynamics. "

Dividend Stability
Q: Any plans to adjust the dividend?
A: Management confirmed they will maintain the $0.08 monthly dividend, as the current payout is well-supported by performance. "

Rate & Mix
Q: What drives midweek ADR improvements?
A: The team expects further midweek rate increases due to a shift towards more business travel, with booking trends remaining resilient despite economic softness. "

Guidance Revision
Q: What drove your revised guidance?
A: They attributed the revision primarily to softer leisure rate growth and a stronger focus on midweek performance affecting ADR expectations. "

Monthly Trends
Q: How did performance vary monthly?
A: Management noted a strong start in April that tapered later due to rate pullbacks impacted by holiday effects, influencing the overall quarterly performance. "

Weekday Mix
Q: Has weekday business travel improved?
A: They observed robust weekday occupancy gains driven by both small/medium and larger corporate accounts, enhancing overall performance. "

Holiday Impact
Q: How did holidays affect demand?
A: Executives mentioned that holidays like the 4th of July and Juneteenth led to temporary softness in rates, though overall demand and occupancy remained strong. "

NY Property Issue
Q: What is the status of the New York property?
A: They are actively addressing delayed payments and legal challenges on the property with a conservative approach to timing and transition costs. "

Portfolio Mix
Q: How do top versus lower-end properties perform?
A: Management emphasized that performance is driven by market conditions rather than asset class, with top-end properties benefiting from stronger local fundamentals. "

Channel Mix
Q: Did OTA channels outperform expectations?
A: Channel performance was in line with projections, with OTA contributions matching expectations during a strong leisure quarter. "

Market Mix TN/NC
Q: How are Tennessee and North Carolina markets faring?
A: They cited challenges with rate issues in Tennessee and softer performance in parts of North Carolina reflecting localized market concerns. "

Contract Structure
Q: Would a percentage off bar improve contract outcomes?
A: Executives did not find it necessary to reanalyze structures, maintaining current fixed contract methods without a change to percentage-based discounts. "

Buyback Consistency
Q: Will buybacks increase with current share pullbacks?
A: While the share price pullback is attractive, the decision on buybacks remains contingent on market dynamics and overall asset pricing. "